What Does BFE Mean?
When evaluating properties in flood-prone regions, whether for financing or investment, it’s crucial to understand key terms like BFE, or Base Flood Elevation, which refers to the height (in feet above sea level) to which floodwaters are expected to rise during a "base flood" (a flood event with 1% chance of occurring any given year, aka “100‑year flood.”)
Why BFE Matters
For lenders and investors, Base Flood Elevation is an important benchmark for flood risk, insurance exposure, regulatory compliance, and value stability. Including BFE analysis in property underwriting and investment planning is essential for robust risk management and optimizing returns.
Compliance - Lenders issuing federally-backed mortgages in Special Flood Hazard Areas (SFHAs) must ensure borrowers maintain flood insurance. BFE is key in determining a mandatory flood insurance requirement. Likewise, where insurance is not mandatory but highly recommended, BFE is a key measurement in that request.
Underwriting - If a structure's lowest floor sits below the BFE, the risk for flood damage—and thus financial loss—is greatly increased. Elevation Certificates (ECs), which document elevation relative to BFE, are often required by mortgage underwriters and insurers for exactly this reason.
Appraisal & Valuation - Properties elevated above BFE are less vulnerable and may command stronger resale potential or stability in insurance expenses—positively impacting future value and attractiveness to buyers or tenants.
Mitigation - Constructing or retrofitting properties so the lowest floor is above BFE—not just meeting the minimum but adding height (called freeboard)—can lower risk profile, reduce ongoing expenses, and add resilience—beneficial for loan performance and asset preservation.
Streamlining Business - Elevated buildings may qualify for map amendments (like LOMA/LOMR‑F if brought above BFE)—which can remove mandatory flood insurance requirements and streamline escrow & loan closing.
Actionable Takeaways
Secure accurate, certified flood zone determinations from WTG, that include Base Flood Elevation (BFE) data for any properties located in or near flood-prone areas. (More ideally, secure it for all properties in your portfolio, as more than 40% of insurance claims come from non high-risk zones.) Consult with WTG to certify that a property’s elevation certificate to assess whether the structure lies above or below the BFE.
Recognize that properties elevated above the BFE typically carry less risk and may be valued more favorably. This can improve resale potential and make the asset more attractive to future buyers or tenants.
Support or encourage mitigation efforts that raise structures above the BFE. These measures can reduce flood insurance premiums, minimize damage potential, and protect long-term investment value.
Analyze your real estate or loan portfolio to identify how many properties lie within Special Flood Hazard Areas and how many are below BFE. Use this data to assess exposure, prioritize mitigation, or refine lending/investment strategies.
How WTG Can Help
Western Technologies Group is the industry leader in producing highly accurate, detailed and thorough Flood Zone Determinations. Our reports are produced with a more thorough process compared to industry standard, and include more highly detailed, precise mapping with current FEMA floodplain map overlays as well as Preliminary map overlays (where available from FEMA).
Our determinations are certified, and insured for $3M E&O each, plus backed by full support of our own Certified Floodplain Managers, GIS Specialists based in our Flood Resource Center in Somerville, NJ. Our team is here to explain and interpret report and other official findings, provide guidance in any next steps available for recourse, mitigation or challenge and can provide Elevation Certificate, LOMC and LOMA services and more.
When it comes to flood zones and other property data matters, we are your expert team!
The information provided is for informative purposes only and is not intended to be legal advice or a legal opinion. For legal advice, please consult an attorney.
